As investors look ahead to another trading week, social media stocks could be worth looking out for now. For the most part, this area of the stock market today offers investors an interesting opportunity, to say the least. In essence, social media companies often employ today’s cutting-edge tech to connect consumers across the globe. At a time when the pandemic continues to impact travel in and out of certain regions, this would be relevant. In fact, some of the biggest names in the tech world today play active roles in the social media space. These would be the likes of Meta Platforms (NASDAQ: FB ) and Alphabet (NASDAQ: GOOGL) subsidiary Google.
Not to mention, these companies continue to push boundaries when it comes to how we interact digitally. In particular, Meta is making substantial progress in growing its virtual reality (VR)-based metaverse platform, Horizon. Since launching back in early December 2021, the platform’s user base has exploded to over 300,000. This would add up to an increase of about ten-fold over the past four months. At the same time, Google-owned social media platform YouTube is reportedly looking into podcasts. This follows reports of the company reportedly looking into hiring a podcast executive. For one thing, this would be a newer end of the social media spectrum that YouTube is diving into.
Moreover, companies like Bumble (NASDAQ: BMBL) are also thriving on the operational front. In its latest quarterly update, the company posted year-over-year gains of over 42.2% in its core app revenue. Having read all of this, you might be keen on social media stocks yourself. Should that be the case, here are three making headlines in the stock market now.
Social Media Stocks To Buy [Or Sell] This Month
- Twitter Inc. (NYSE: TWTR)
- Spotify Technology (NYSE: SPOT)
- Snap Inc. (NYSE: SNAP)
Twitter Inc.
Starting us off today is Twitter. Overall, the company primarily operates via its microblogging social networking platform of the same name. Through Twitter, users can post, interact with, and share messages in the form of “tweets”. More importantly, all of this can be done quickly and efficiently, making Twitter an almost immediate source of news for users across the globe as well. Sticking with the reactionary nature of Twitter’s platform, TWTR stock appears to be trending in the stock market today.
Diving in, this is mostly thanks to the latest piece of news regarding the company’s shareholders. According to Twitter’s regulatory filing from earlier today, Tesla (NASDAQ: TSLA) CEO Elon Musk now has a 9.2% stake in the company. Going into the specifics, Musk currently owns 73,486,938 shares of Twitter. Based on TWTR stock’s closing price of $39.30 from last week, this adds up to a $2.89 billion stake. Holding this investment would be the Elon Musk Revocable Trust, to which Musk is the sole Trustee.
Despite his recent criticisms about the social media platform, Musk is showing some serious interest in the firm. Safe to say, this move would be surprising for many. Nonetheless, as with most of Musk’s investments, this latest move seems to be attracting investors all the same. As it stands, TWTR stock is currently gaining by over 20% at today’s opening bell thanks to this news. With all this in mind, would you consider TWTR stock a top buy among its social media peers now?
[Read More] Stock Market Today: Dow Jones, S&P 500 Mixed; Twitter (TWTR) Jumps On Elon Musk’s Stake
Spotify Technology SA
Spotify is one of the world’s most popular audio streaming subscription services. It has a community of more than 406 million monthly active users and over 180 million premium subscribers who share and listen to its massive catalog of tracks and podcasts. In fact, the company has over 80 million tracks that include 3.6 million podcast titles. It is also available in over 180 markets around the globe.
Last year, it was reported that Spotify had acquired podcast discovery platform Podz for roughly $49.4 million to help accelerate the streamer’s extensive investments in podcasts. Now, Spotify is testing a feature that leverages the startup’s technology to help users find new podcasts they may like. Podz was one of the few companies that originally attempted to solve the problem of podcast delivery with something it calls the first audio newsfeed. Through it, it presents users with 60-second audio clips from various shows that you would scroll through in a vertical feed. This is similar to the format popularized by social apps like TikTok.
On Sunday, FC Barcelona ratified the partnership with Spotify, by which the audio platform will become the main partner of the club and also its official audio streaming partner. Spotify will also sponsor FC Barcelona in four major areas. This would include the jerseys covering four reasons. VP of Marketing Juli Guiu explains that through title rights sponsorship, the club stadium will be renamed Spotify Camp Nou. Another part of the agreement involves advertising assets, such as electronic perimeter board advertising in Camp Nou and also advertising panels in the press room, mix zone, and during other institutional events. Given this exciting piece of news, is SPOT stock worth investing in?
[Read More] Top Stock Market News For Today April 4, 2022
Snap Inc.
Last but not least, we have Snap, a camera, and social media company. It continues to empower its users to express themselves and learn about the world through the use of its app, Snapchat. It has over 300 million daily active users (DAUs) and over 6 billion AR Lens plays per day on average. The company also has a high penetration in most established markets, with over 75% of the 13–34-year-olds in the U.S., U.K., and Australia using Snapchat.
In February, the company announced its fourth-quarter and full-year 2021 financials. Diving in, fourth-quarter revenue increased by 42% year-over-year, while full-year revenue increased by 64% year-over-year. It was also the first quarter of positive net income for Snapchat as a public company. “2021 was an exciting year for Snap and we made significant progress growing our business and serving our global community,” said Evan Spiegel, CEO. “The strength of our core business has enabled us to accelerate our investments in augmented reality, transforming the way that the Snapchat community experiences the world through our camera.”
The company also continues to grow as DAUs were 319 million at the end of 2021, an increase of 20% year-over-year. It also continues to invest and innovate in its AR platform. Lens Creators can now include a Call-to-Action link within a Lens, making it easier for Lens Creators to grow their businesses. It also rolled out Food Scan, the newest improvement to its Camera that uses the powerful visual recognition capabilities of Scan to understand different food and ingredients and provide recipe recommendations. All things considered, is SNAP stock worth watching right now?
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